The Clap
Egypt has several obligations to the IMF after securing a $3 billion loan, but some may be of more concern to citizens or investors than others. Here are the most notable requests that should interest investors from the IMF:
- Stop tax exemptions for companies affiliated with the government and the army
- Public and military companies should pay the same electricity and water rates as privately owned companies
- Officials submit financial disclosures every 3 years electronically in preparation for requesting them annually
- Ensure that fuel prices reflect international prices, and do not reduce fuel prices even if the Fuel Automatic Pricing Committee proposes to do so
So What
Egypt is working on its commitments to the IMF. One of the most important steps it took was to include 5 companies in the pre-IPO Fund, to prepare them for listing on the EGX.
Now What
The IMF expects Egypt’s tax revenues to increase by more than 180% over the next 6 years to reach EGP 2.7 trillion.
